Lululemon: Why the Gloom-and-Doom Crowd is Wrong

Lululemon has full control over its pricing, unlike many of its rivals.
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Wall Street has been turned off by Lululemon’s decision to hold a few warehouse sales in recent months, but one analyst thinks the market is overly negative about the sales.

“We are tired of hearing about warehouse sales,” writes Oppenheimer analyst Anna Andreeva, who thinks that such events are helpful for clearing out excess inventory while still making a decent profit. She adds that warehouse sales are more profitable than selling at outlet stores.

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